Earnings results often indicate the direction a company will take in the coming months. Now that the second quarter is behind us, let’s take a look at AppLovin (NASDAQ:APP) and its peers.
The digital advertising market is large, growing and becoming increasingly diverse, both in terms of audience and media. As a result, there is a growing need for software that allows advertisers to use data to automate and optimize ad placements.
The seven ad software stocks we track reported a satisfying second quarter. As a group, revenues exceeded analyst consensus expectations by 2.6%, while revenue expectations for the next quarter were in line.
While some advertising software stocks have done slightly better than others, collectively they have fallen. On average, share prices have fallen 2.9% since the last earnings results.
Located at the crossroads of the mobile advertising ecosystem with more than 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) offers software solutions that enable mobile app developers to market, monetize and grow their apps through AI-powered advertising and analytics tools.
AppLovin reported revenue of $1.26 billion, up 16.5% year over year. This print fell 1.2% short of analyst expectations. Overall, it was a mixed quarter for the company, with EBITDA expectations for the next quarter exceeding analyst expectations, but revenue expectations of analysts lagging slightly.
AppLovin Total revenue
AppLovin had the weakest performance compared to analyst estimates across the group. Interestingly, the stock is up 52.9% since reporting and is currently trading at $598.01.
Is Now the Time to Buy AppLovin? See our full analysis of the revenue results here. This is free for active Edge members.
Powered by an AI engine that processes more than a trillion consumer signals every month, Zeta Global (NYSE:ZETA) operates a data-driven cloud platform that allows companies to target, connect and communicate with consumers through personalized marketing across channels such as email, social media and video.
Zeta Global reported revenue of $308.4 million, up 35.4% year-over-year, beating analyst expectations by 3.9%. The company had a very strong quarter with solid earnings from analyst EBITDA estimates and full-year EBITDA expectations exceeding analyst expectations.
Zeta global total revenue
Zeta Global achieved the fastest revenue growth and the highest full-year guidance increase among its peers. The market seems pleased with the results, as the stock is up 12.7% since reporting. It is currently trading at $17.90.
Is Now the Time to Buy Zeta Global? See our full analysis of the revenue results here. This is free for active Edge members.
PubMatic (NASDAQ:PUBM) powers billions of daily ad impressions across the open internet and operates a technology platform that helps publishers maximize revenue from their digital ad inventory while giving advertisers greater control and transparency.
PubMatic reported revenue of $71.1 million, up 5.7% year over year, beating analyst expectations by 4.4%. Still, it was a slower quarter as next quarter’s revenue and EBITDA guidance fell short of analyst expectations.
PubMatic achieved the slowest revenue growth within the group. As expected, the stock has fallen 25.4% since the results and is currently trading at $7.88.
Read our full analysis of PubMatic’s results here.
LiveRamp (NYSE:RAMP) serves as a digital intermediary in an increasingly privacy-conscious world, providing technology that allows companies to securely share and connect their customer data with trusted partners while maintaining privacy compliance.
LiveRamp reported revenue of $194.8 million, up 10.7% year over year. This print exceeded analyst expectations by 1.9%. Zooming out, it was a mixed quarter, as it also delivered an impressive profit versus analyst EBITDA estimates, but revenue expectations for the next quarter fell slightly short of analyst expectations.
The company lost one business customer paying more than $1 million annually, ending at a total of 127. The stock has fallen 16.2% since reporting and is currently trading at $27.31.
Read our full, actionable report on LiveRamp here, it’s free for active Edge members.
Built as an alternative to walled garden advertising ecosystems, The Trade Desk (NASDAQ:TTD) offers a cloud-based platform that helps advertisers and agencies plan, manage and optimize digital advertising campaigns across multiple channels and devices.
The Trade Desk reported revenue of $694 million, up 18.7% year over year. This result exceeded analyst expectations by 1.2%. Let’s take a step back: It was a mixed quarter, as it also showed a solid improvement in analyst EBITDA estimates, but a miss in analyst billing estimates.
The stock has fallen 43.1% since reporting and is currently trading at $50.30.
Read our full, actionable report on The Trade Desk here. It’s free for active Edge members.
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually declining from its post-pandemic peak and moving closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashy recession signals. This is the much-desired soft landing that many investors were hoping for. The recent interest rate cuts (0.5% in September and 0.25% in November 2024) have boosted the stock market, making 2024 a strong year for equities. Donald Trump’s presidential victory in November fueled additional market gains, sending indexes to record highs in the days following his victory. However, debates over possible corporate tax rates and adjustments continue, raising questions about economic stability in 2025.
Do you want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum stocks and add them to your watchlist. These companies are primed for growth regardless of the political or macroeconomic environment.
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